H&G Sales, Inc. v. Jake Zimmerman, Assessor, St. Louis County

September 18th, 2020


Complainant, )  Appeal No. 19-11584
v. ) Parcel No. 15N510058
Jake Zimmerman, Assessor, )
St. Louis County, Missouri, )
Respondent. )


  H&G Sales, Inc., (Complainant) appeals the St. Louis County Board of Equalization’s (BOE) decision finding that the fair market value of the subject property on January 1, 2019, was $1,927,700.  Complainant claims overvaluation and asserts the true value in money (TVM) of the subject property on January 1, 2019, was $1,418,000.  The parties waived an evidentiary hearing and submitted the appeal for a decision and order based on the record with no briefing.  Complainant did not produce substantial and persuasive evidence of overvaluation.  The BOE’s decision is AFFIRMED.
Complainant is represented by attorney Apollo Carey.  Respondent is represented by attorney Steven Robson.


1. Authority.  The BOE issued its decision on October 4, 2019.  Complainant filed a complaint for review of assessment within 30 days of the BOE decision.
2. The Subject Property.  Complainant owns the subject property.  The subject property is real property located at 11629 Lackland Road in St. Louis County, Missouri.  The subject property consists of a lot and a 42,976 square foot building used as a warehouse and office.  The building was built in 1965.
3. Assessment.  Respondent assessed subject property as commercial property with an appraised value of $1,927,700 as of January 1, 2019.
4. Board of Equalization.  The BOE determined the appraised value of the subject property was $1,927,700 as of January 1, 2019.
5. Complainant’s Evidence.  Complainant submitted written direct testimony (WDT) from Christine Stefl and Exhibit A.
Ms. Stefl is Complainant’s authorized representative.  Ms. Stefl prepared Exhibit A, which includes a chart of five comparable sales occurring between September 2016 and November 2018.   The comparable sales involved properties located within four miles of the subject property.  Ms. Stefl testified the comparable sales involved properties “similar to the subject property in age, land size, use, and square footage.”  (WDT at 2).  Exhibit A includes a table of the five comparable sales supporting Complainant’s opinion of value.  The most pertinent data from the table in Exhibit A were as follows:
Use             Sale Date              Sale Price         Square Footage           Price Per Sq. Ft.
Warehouse          6/15/17                  $650,000          44,511                          $14.60
Warehouse          11/21/18                $1,400,000       47,760                         $30.59
Warehouse         12/5/16                  $1,100,000       47,110                          $23.35
Warehouse          9/6/16                   $1,385,000       47,596                         $29.10
Warehouse         10/11/17                 $1,380,281        59,284                         $23.28

Ms. Stefl testified the comparable sales indicated the market value of the subject property is $23.00 per square foot.  She concluded Respondent’s valuation equates to $44.86 per square foot and that this “appears inconsistent with the comparable sales information provided.”  (WDT at 2-3).

6. Respondent’s Evidence.  Respondent submitted Exhibit 1.  Exhibit 1 is the BOE Findings and Notice of Decision informing Complainant that the BOE determined the appraised value of the subject property was $1,927,700 as of January 1, 2019.
7. Value.  The true value in money (TVM) of the commercial property on January 1, 2019, was $1,927,700.


1. Authority
The STC has authority to hear and decide Complainant’s appeal.   Mo. Const. art. X, sec. 14; section 138.430.1, RSMo 2000.
2.  Evidence
The hearing officer is the finder of fact and determines both the credibility and weight of the evidence.  Kelly v. Missouri Dep’t of Soc. Servs., Family Support Div., 456 S.W.3d 107, 111 (Mo. App. W.D. 2015); see also section 536.090 (requiring all decisions and orders in contested cases to include “findings of fact”).  “Although technical rules of evidence are not controlling in administrative hearings, fundamental rules of evidence are applicable.”  Mo. Church of Scientology v. State Tax Comm’n, 560 S.W.2d 837, 839 (Mo. banc 1977).
3.  Assessment and Valuation
Commercial real property is assessed at 32% of its “true value in money” as of January first of each odd-numbered year.  Sections 137.115.1, 137.115.5(1)(c).  “True value in money is the fair market value of the property on the valuation date, and is a function of its highest and best use, which is the use of the property which will produce the greatest return in the reasonably near future.”  Snider, 156 S.W.3d 341, 346 (Mo. banc 2005) (internal quotation omitted).  The fair market value is “the price which the property would bring from a willing buyer when offered for sale by a willing seller.”  Mo. Baptist Children’s Home v. State Tax Comm’n, 867 S.W.2d 510, 512 (Mo. banc 1993).
“For purposes of levying property taxes, the value of real property is typically determined using one or more of three generally accepted approaches.”  Snider, 156 S.W.3d at 346 (Mo. banc 2005).  The three generally accepted approaches are the cost approach, the income approach, and the comparable sales approach.  Id. at 346-48.
4. Complainant’s Burden of Proof
The taxpayer bears the burden of proof and must show by a preponderance of the evidence that the property was overvalued.  Westwood P’ship v. Gogarty, 103 S.W.3d 152, 161 (Mo. App. E.D. 2003).  To prove overvaluation, a taxpayer must rebut the BOE’s presumptively correct valuation and prove the “value that should have been placed on the property.”  Snider v. Casino Aztar/Aztar Missouri Gaming Corp., 156 S.W.3d 341, 346 (Mo. banc 2005).  The taxpayer’s evidence must be both “substantial and persuasive.”  Id.  “Substantial evidence is that evidence which, if true, has probative force upon the issues, and from which the trier of fact can reasonably decide the case on the fact issues.”  Savage v. State Tax Comm’n, 722 S.W.2d 72, 77 (Mo. banc 1986) (internal quotation omitted).  Evidence is persuasive when it has “sufficient weight and probative value to convince the trier of fact.”  Daly v. P.D. George Co., 77 S.W.3d 645, 651 (Mo. App. E.D. 2002); see also White v. Dir. of Revenue, 321 S.W.3d 298, 305 (Mo. banc 2010) (noting the burden of persuasion is a “party’s duty to convince the fact-finder to view the facts in a way that favors that party”).

5. Complainant Did Not Prove Overvaluation
Ms. Stefl’s written direct testimony and Exhibit A utilize comparable sales to support Complainant’s overvaluation claim.  “The comparable sales approach uses prices paid for similar properties in arms-length transactions and adjusts those prices to account for differences between the properties.”  Snider, 156 S.W.3d at 347-48 (internal quotation omitted).   When utilizing the comparable sales approach, adjustments are necessary to reconcile differences and enable a market based comparison of properties with varying characteristics.   For instance, the comparable sales approach requires a positive adjustment to the value of the comparable property to account for superior characteristics the subject property.  Conversely, the comparable sales approach requires a negative adjustment to account for inferior characteristics of the subject property.
While Complainant’s approach is based on the legally recognized, market-based comparable sales approach, neither Ms. Stefl’s written direct testimony nor Exhibit A includes any adjustments accounting for differences between the subject property and the properties included in the comparable sales analysis.  There is also no time-of-sale adjustment accounting for possible market appreciation between the dates of the comparable sales and the January 1, 2019, valuation date.  Because Complainant’s comparable sales analysis does not include the necessary market-based adjustments, it does not constitute substantial and persuasive evidence rebutting the BOE’s presumptively correct valuation and establishing the “value that should have been placed on the property.”  Snider, 156 S.W.3d at 346; see also In re Marriage of Patrick, 201 S.W.3d 591, 598 (Mo. App. S.D. 2006) (holding the circuit court properly disregarded a “comparative market analysis” because it “did not meet the requirements of the comparable sale approach method for valuation of real estate” by failing to make monetary adjustments accounting for property differences).   Complainant’s overvaluation claim is denied.


The BOE’s decision is affirmed.  The TVM of the subject property was $1,927,700 on January 1, 2019.
Application for Review
A party may file with the STC an application for review of this decision within 30 days of the mailing date set forth in the certificate of service for this decision.  The application “shall contain specific detailed grounds upon which it is claimed the decision is erroneous.”  Section 138.432.  The application must be in writing, and may be mailed to the State Tax Commission of Missouri, P.O. Box 146, Jefferson City, MO 65102-0146, or emailed to Legal@stc.mo.gov.  A copy of the application must be sent to each person listed below in the certificate of service.

Disputed Taxes

The Collector of St. Louis County, and the collectors of all affected political subdivisions therein, shall continue to hold the disputed taxes pending the possible filing of an application for review, unless the disputed taxes have been disbursed pursuant to a court order under the provisions of section 139.031.


SO ORDERED September 18, 2020.


Senior Hearing Officer
State Tax Commission

Certificate of Service
I hereby certify that a copy of the foregoing has been electronically mailed and/or sent by U.S. Mail on September 18, 2020, to:  Complainant(s) and/or Counsel for Complainant(s), the County Assessor and/or Counsel for Respondent and County Collector.


Elaina McKee
Legal Coordinator


Contact Information for State Tax Commission:
Missouri State Tax Commission
421 East Dunklin Street
P.O. Box 146
Jefferson City, MO 65102-0146
Fax 573-751-1341